Documenting Entry Rules

The Test of a Good Entry Rule

A good entry rule passes the stranger test: could you hand your playbook to someone who has never seen your chart, and could they identify valid entry signals?

If the answer is no — if your rules require "feel" or "experience" to apply — they're not specific enough yet.

The Anatomy of an Entry Rule

A complete entry rule has three components:

1. Trigger condition — The specific price action event that initiates the trade

2. Confirmation conditions — Additional criteria that must be met before entry

3. Timing — When (time of day, candle close, market open, etc.) the setup is valid

Writing Your Entry Rules

Let's work through an example: a momentum breakout setup.

Vague version:

"Buy when price breaks out with good volume and momentum is strong."

Specific version:

"Buy on the close of the first 5-minute candle that closes above the prior day's high, provided: (1) the breakout candle's volume is at least 1.5× the 20-candle average volume, (2) RSI is above 55 on the 5-minute chart, (3) the setup occurs between 9:45 AM and 11:30 AM EST, (4) the daily trend (200 SMA on 15-minute) is upward."

Notice how the specific version removes all ambiguity. Either all four conditions are met or the trade doesn't qualify.

Common Confirmation Conditions

When writing your entry rules, choose confirmations that are objectively measurable:

• Volume confirmation — Volume above X% of average
• Trend filter — Price above/below moving average
• Momentum filter — RSI, MACD, or stochastic in specified zone
• Volatility filter — ATR above/below threshold
• Session filter — Time-of-day restriction
• Market condition filter — SPY/ES direction, VIX level

The "No Exceptions" Rule

Once your entry rules are written, commit to them. No exceptions.

The most common way traders destroy their edge is by overriding their rules when something "looks right" but doesn't meet criteria. These override trades almost always underperform.

If you keep overriding a specific rule, that's a signal to evaluate whether the rule is correct — not permission to ignore it. Change the rule if the data supports it, but change it deliberately, not in the heat of the moment.

Documenting in Tradapt

In the Tradapt Playbook feature, there's a dedicated Entry Rules field. Write your rules as a numbered list. Each rule should be a single, clear statement.

After creating the playbook entry, use the Checklist to mark off each condition before entering your next qualifying trade.